ST. LOUIS, Dec. 2, 2015 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ: ISLE) (the "Company") today reported
financial results for the second quarter of fiscal year 2016 ended
October 25, 2015 and other
Company-related news.
Fiscal 2016 Second Quarter Highlights
- Adjusted EBITDA increased 9.3% to $48.4
million year over year.
- Adjusted EBITDA margin increased to 20.5%, up 159 bps year over
year.
- Adjusted earnings per share from continuing operations of
$0.19 versus $0.05 in the prior year quarter.
Consolidated Financial Results
The following table outlines the Company's financial results
(dollars in millions, except per share data, unaudited):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
October
25,
|
|
October
26,
|
|
October
25,
|
|
October
26,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net
revenues
|
$ 236.3
|
|
$ 234.5
|
|
$ 483.2
|
|
$ 471.4
|
|
Consolidated Adjusted
EBITDA (1)
|
48.4
|
|
44.3
|
|
99.5
|
|
88.4
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
7.8
|
|
(0.1)
|
|
16.3
|
|
(1.8)
|
|
Income (loss) from
discontinued operations
|
3.6
|
|
(1.0)
|
|
(1.7)
|
|
(1.5)
|
|
Net income
(loss)
|
11.5
|
|
(1.0)
|
|
14.6
|
|
(3.3)
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share from continuing operations
|
0.19
|
|
(0.00)
|
|
0.39
|
|
(0.05)
|
|
Diluted income (loss)
per share from discontinued operations
|
0.09
|
|
(0.03)
|
|
(0.04)
|
|
(0.03)
|
|
Diluted net income
(loss) per share
|
0.28
|
|
(0.03)
|
|
0.35
|
|
(0.08)
|
|
Adjusted income per
share (2)
|
0.19
|
|
0.05
|
|
0.46
|
|
0.08
|
|
|
|
(1)
|
For a further
description of Consolidated Adjusted EBITDA, refer to the
reconciliation tables following the narrative and the definition of
Adjusted EBITDA in footnote (1) of this release.
|
|
(2)
|
For a
reconciliation of the GAAP basis per share amounts to adjusted
income (loss) per share, refer to the reconciliation table labeled
"Reconciliation of GAAP Income (Loss) from Continuing Operations to
Adjusted Income (Loss) and GAAP Income (Loss) from Continuing
Operations Per Share to Adjusted Income (Loss) Per
Share."
|
Virginia McDowell, the Company's
president and chief executive officer,
commented,
"We grew Adjusted EBITDA for the seventh consecutive quarter
with 11 of 14 properties reporting Adjusted EBITDA increases. This
quarter marks an important achievement in our continuing efforts to
optimize our marketing reinvestment. As we continue to target
our marketing dollars toward more profitable customers, we
strategically reduced promotional allowances nearly 10% during the
quarter, which also resulted in a slight reduction in our gross
revenues. Nonetheless, in combination with prudent expense
management, we grew Adjusted EBITDA by 9.3%, resulting in flow
through of more than 200% and a 160-basis-point increase in
operating margins.
"We continue to use our free cash flow to invest in our
properties and deleverage our balance sheet. We are
renovating hotel rooms and food and beverage outlets, upgrading our
technology platforms and introducing new products to our casino
floors. At the same time, we reduced our debt balance by
$30 million during the quarter.
Our balance sheet is now in the best shape it has been in over a
decade."
Financial Highlights
Net revenues for the current quarter were $236.3 million compared to $234.5 million in the prior year quarter, up
0.8%. Consolidated Adjusted EBITDA was $48.4 million for the quarter compared to
$44.3 million in the prior year
quarter, up 9.3%. Adjusted EBITDA margin increased to 20.5% from
18.9%. Interest expense was $17.0
million relative to $21.1
million in the prior year quarter, as a result of our lower
overall debt balance as well as the benefits of refinancing our
7.75% Senior Notes due 2019, completed early in the first quarter
of fiscal 2016.
Operating results in the prior year's quarter were impacted by
$3.0 million in expenses related to a
voter referendum in Colorado and a
favorable property tax settlement related to our Waterloo property of $1.2 million.
On October 19, 2015, we closed our
gaming operations in Natchez,
Mississippi and completed the previously announced sale of
our hotel and certain non-gaming assets to Casino Holding
Investment Partners, LLC, the parent company of Magnolia Bluffs
Casino in Natchez. During the quarter, we recorded a gain of
$6.4 million on the sale of these
assets, which was partially offset by severance and operating
losses incurred during the quarter. The gain and operating
results of Natchez are reflected
in discontinued operations for all periods presented.
On a GAAP basis, diluted income per share from continuing
operations was $0.19 compared to a
diluted loss per share from continuing operations of ($0.00) in the prior year's quarter. Net income
per share was $0.28 for the quarter,
relative to a net loss of ($0.03) per
share in the prior year quarter. Adjusted income per share
from continuing operations was $0.19
for the quarter compared to adjusted net income per share from
continuing operations of $0.05 in the
prior year.
Operating Results
(All comparisons are to the prior year quarter)
Black Hawk – Net
revenues increased $0.9 million, or
2.6%, to $33.6 million and Adjusted
EBITDA increased $1.0 million to
$9.9 million, at our two casinos in
Black Hawk. Black Hawk
benefited from more effective marketing spend during the
quarter.
Pompano – Net revenues increased 4.9%, to $38.5 million, and Adjusted EBITDA increased
17.0%, to $7.3 million at Pompano
Park. The property benefited from continued improved customer
reinvestment and favorable market trends.
Iowa – Net revenues for
our Iowa properties increased
$0.1 million to $47.0 million, while Adjusted EBITDA decreased
$0.2 million to $13.1 million. Net revenues and Adjusted EBITDA
were essentially flat at our Waterloo and Marquette properties. Our Bettendorf
property continues to be impacted by on-going construction
disruption related to the build-out of our land-based casino as
well as ongoing construction related to the I-74 bridge near the
property.
Lake Charles – Net revenues decreased $2.2 million, to $28.9
million, or 7.1%, while Adjusted EBITDA decreased
$1.0 million to $3.5 million, or 21.7%. Results continue to
be impacted by the opening of a new competitor in the market in
December of 2014.
Mississippi – Net
revenues for Lula and Vicksburg were flat at $19.1 million. Adjusted EBITDA increased
30.9%, to $3.9 million from
$3.0 million. In Lula, we
improved Adjusted EBITDA 35.0%, to $2.6
million, and improved operating margins nearly 600 bps
through lower operating costs. Vicksburg's Adjusted EBITDA increased 23.0%,
to $1.3 million from $1.0 million. Vicksburg's operating margins increased over
320 bps as a result of targeted customer reinvestment and reduced
operating costs.
Missouri – Net revenues
for our Missouri properties
increased $0.7 million to
$59.6 million, or 1.2%, and Adjusted
EBITDA increased $1.6 million to
$16.0 million, or 11.4%.
Adjusted EBITDA and operating margins increased at each of our four
Missouri properties during the
quarter. In Caruthersville, we
improved Adjusted EBITDA and operating margins by 37.4% and 530
bps, respectively, primarily as a result of recent capital
improvements to the property that included new parking and
slots. Cape Girardeau's
Adjusted EBITDA increased 34.6% through reductions in cost of sales
and other operating and marketing costs. Cape Girardeau's results also include the
negative impact of approximately $0.1
million of legal fees associated with a lawsuit related to
the original construction at the property that was settled
subsequent to the end of the quarter. Boonville and Kansas
City's Adjusted EBITDA increased 3.1% and 1.5%,
respectively. We are currently renovating the hotel at
Boonville and during the quarter
there were over 4,000 fewer room nights available, or approximately
one-third of the hotel, which impacted results.
Pennsylvania – Net
revenues were $9.6 million, up 6.6%,
and Adjusted EBITDA increased $0.4
million from prior year's quarter to slightly positive
EBITDA. We continue to grow the database, fine tune the
operating cost structure and optimize reinvestment
levels.
Corporate Expenses
Corporate and development expenses were $7.0 million for the quarter compared to
$6.7 million in the second quarter of
fiscal 2015, primarily related to an increase in non-cash stock
compensation expense, offset by the timing of our long-term
incentive award, which occurred in the first quarter of the current
fiscal year versus the second quarter of the prior fiscal year.
Non-cash stock compensation expense was $1.6 million for the quarter compared to
$1.1 million in the second quarter of
fiscal 2015. Excluding stock compensation expenses, corporate
and development expenses declined 4.0%.
Capital Structure and Capital Expenditures
As of October 25, 2015, the
Company had:
- $60.2 million in cash and cash
equivalents, excluding $9.8 million
in restricted cash and investments;
- $958.6 million in total debt;
and
- $190 million in net line of
credit availability.
Capital expenditures were $33.2
million in the six months ended October 25, 2015, including $28.8 million of maintenance and gaming equipment
purchases as well as spending related to the hotel renovations in
Bettendorf and Boonville. We
have spent $4.4 million to date this
fiscal year on the previously announced up to $60 million land-based project at
Bettendorf. For the project to date, we have expended
$6.6 million.
Consistent with previous guidance, the Company continues to
expect total capital expenditures for fiscal 2016 of approximately
$100 million to $105 million,
inclusive of approximately $45 million to
$50 million of capital spending this fiscal year related to
the land-based casino build out in Bettendorf.
Conference Call Information
Isle of Capri Casinos, Inc. will host a conference call on
Wednesday, December 2, 2015 at
10:00 am central time during which
management will discuss the financial and other matters addressed
in this press release. The conference call can be accessed by
interested parties via webcast through the investor relations page
of the Company's website, www.islecorp.com, or, for domestic
callers, by dialing 888-346-3970. International callers can
access the conference call by dialing 412-902-4263. The
conference call will be recorded and available for review starting
at 11:59 pm central on Wednesday, December 2, 2015, until 11:59 pm central on Wednesday, December 16, 2015, by dialing
877-344-7529; International: 412-317-0088 and access number
10076477.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc. is a leading regional gaming
and entertainment company dedicated to providing guests with
exceptional experience at each of the 14 casino properties that it
owns or operates, primarily under the Isle and Lady Luck
brands. The Company currently operates gaming and
entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, and Pennsylvania. More information is available at
the Company's website, www.islecorp.com.
Forward-Looking Statements
This press release may be deemed to contain forward-looking
statements, which are subject to change. These forward-looking
statements may be significantly impacted, either positively or
negatively by various factors, including without limitation,
licensing, and other regulatory approvals, financing sources,
development and construction activities, costs and delays, weather,
permits, competition and business conditions in the gaming
industry. The forward-looking statements are subject to numerous
risks and uncertainties that could cause actual results to differ
materially from those expressed in or implied by the statements
herein.
Additional information concerning potential factors that could
affect the Company's financial condition, results of operations and
expansion projects, is included in the filings of the Company with
the Securities and Exchange Commission, including, but not limited
to, its Form 10-K for the most recently ended fiscal year.
|
CONTACTS:
|
|
Isle of Capri
Casinos, Inc.,
|
|
Eric Hausler, Chief
Financial Officer-314.813.9205
|
|
Jill Alexander,
Senior Director of Corporate Communication-314.813.9368
|
|
http://www.islecorp.com
|
|
ISLE OF CAPRI
CASINOS, INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In thousands,
except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
October
25,
|
|
October
26,
|
|
October
25,
|
|
October
26,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Casino
|
$ 249,061
|
|
$ 250,138
|
|
$ 509,114
|
|
$ 499,679
|
|
Rooms
|
7,775
|
|
8,176
|
|
15,890
|
|
16,207
|
|
Food, beverage,
pari-mutuel and other
|
31,455
|
|
33,747
|
|
64,444
|
|
67,213
|
|
Gross
revenues
|
288,291
|
|
292,061
|
|
589,448
|
|
583,099
|
|
Less
promotional allowances
|
(52,030)
|
|
(57,603)
|
|
(106,263)
|
|
(111,745)
|
|
Net
revenues
|
236,261
|
|
234,458
|
|
483,185
|
|
471,354
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Casino
|
37,963
|
|
39,087
|
|
76,676
|
|
78,089
|
|
Gaming
taxes
|
63,430
|
|
63,286
|
|
129,789
|
|
126,576
|
|
Rooms
|
1,883
|
|
1,794
|
|
3,766
|
|
3,641
|
|
Food, beverage,
pari-mutuel and other
|
11,097
|
|
11,120
|
|
23,219
|
|
22,967
|
|
Marine and
facilities
|
13,916
|
|
13,923
|
|
28,022
|
|
28,070
|
|
Marketing and
administrative
|
54,253
|
|
57,199
|
|
110,653
|
|
114,905
|
|
Corporate and
development
|
6,986
|
|
6,735
|
|
14,629
|
|
15,883
|
|
Depreciation and
amortization
|
21,106
|
|
19,339
|
|
41,157
|
|
38,748
|
|
Total
operating expenses
|
210,634
|
|
212,483
|
|
427,911
|
|
428,879
|
|
Operating
income
|
25,627
|
|
21,975
|
|
55,274
|
|
42,475
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(17,004)
|
|
(21,114)
|
|
(34,445)
|
|
(42,443)
|
|
Interest
income
|
80
|
|
92
|
|
159
|
|
179
|
|
Loss on early
extinguishment of debt
|
-
|
|
-
|
|
(2,966)
|
|
-
|
|
Income from
continuing operations before income taxes
|
|
|
|
|
|
|
|
|
8,703
|
|
953
|
|
18,022
|
|
211
|
|
Income tax
provision
|
(892)
|
|
(1,024)
|
|
(1,743)
|
|
(2,007)
|
|
Income (loss) from
continuing operations
|
7,811
|
|
(71)
|
|
16,279
|
|
(1,796)
|
|
Income (loss) from
discontinued operations, net of
income taxes
|
|
|
|
|
|
|
|
|
3,639
|
|
(950)
|
|
(1,685)
|
|
(1,542)
|
|
Net income
(loss)
|
$ 11,450
|
|
$
(1,021)
|
|
$ 14,594
|
|
$ (3,338)
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-basic:
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
0.19
|
|
$
0.00
|
|
$
0.40
|
|
$
(0.05)
|
|
Income (loss) from
discontinued operations, net
of income taxes
|
|
|
|
|
|
|
|
|
0.09
|
|
(0.03)
|
|
(0.04)
|
|
(0.03)
|
|
Net income
(loss)
|
$
0.28
|
|
$
(0.03)
|
|
$
0.36
|
|
$
(0.08)
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share-dilutive:
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
0.19
|
|
$
0.00
|
|
$
0.39
|
|
$
(0.05)
|
|
Income (loss) from
discontinued operations, net
of income taxes
|
|
|
|
|
|
|
|
|
0.09
|
|
(0.03)
|
|
(0.04)
|
|
(0.03)
|
|
Net income
(loss)
|
$
0.28
|
|
$
(0.03)
|
|
$
0.35
|
|
$
(0.08)
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
40,697,797
|
|
39,932,856
|
|
40,639,301
|
|
39,880,379
|
|
Weighted average
diluted shares
|
41,426,375
|
|
39,932,856
|
|
41,341,575
|
|
39,880,379
|
|
ISLE OF CAPRI
CASINOS, INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In thousands,
except share and per share amounts)
|
|
(Unaudited)
|
|
October
25,
|
|
April
26,
|
|
2015
|
|
2015
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 60,227
|
|
$ 66,437
|
|
Marketable
securities
|
19,607
|
|
19,517
|
|
Accounts receivable,
net
|
10,893
|
|
11,171
|
|
Inventory
|
6,426
|
|
6,509
|
|
Deferred income
taxes
|
6,669
|
|
4,626
|
|
Prepaid expenses and
other assets
|
15,190
|
|
11,274
|
|
Assets held for
sale
|
-
|
|
138
|
|
Total current
assets
|
119,012
|
|
119,672
|
|
Property and
equipment, net
|
899,576
|
|
902,226
|
|
Other
assets:
|
|
|
|
|
Goodwill
|
108,970
|
|
108,970
|
|
Other intangible
assets, net
|
53,654
|
|
54,073
|
|
Deferred financing
costs, net
|
16,829
|
|
19,075
|
|
Restricted cash and
investments
|
9,767
|
|
9,193
|
|
Prepaid deposits and
other
|
5,327
|
|
4,743
|
|
Long-term assets held
for sale
|
-
|
|
9,810
|
|
Total
assets
|
$ 1,213,135
|
|
$ 1,227,762
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current maturities of
long-term debt
|
$
76
|
|
$
170
|
|
Accounts
payable
|
25,899
|
|
19,690
|
|
Accrued
liabilities:
|
|
|
|
|
Payroll and
related
|
36,303
|
|
43,371
|
|
Property and other
taxes
|
24,513
|
|
20,456
|
|
Income taxes
payable
|
42
|
|
125
|
|
Interest
|
14,819
|
|
15,350
|
|
Progressive jackpots
and slot club awards
|
15,439
|
|
16,123
|
|
Other
|
22,890
|
|
18,326
|
|
Total current
liabilities
|
139,981
|
|
133,611
|
|
Long-term debt, less
current maturities
|
958,478
|
|
992,712
|
|
Deferred income
taxes
|
41,073
|
|
37,334
|
|
Other accrued
liabilities
|
17,898
|
|
18,432
|
|
Other long-term
liabilities
|
13,912
|
|
22,211
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock, $.01
par value; 2,000,000 shares authorized; none issued
|
-
|
|
-
|
|
Common stock, $.01
par value; 60,000,000 shares authorized; shares issued:
42,066,148 at October 25, 2015 and
at April 26, 2015
|
|
|
|
|
421
|
|
421
|
|
Class B common stock,
$.01 par value; 3,000,000 shares authorized; none issued
|
-
|
|
-
|
|
Additional paid-in
capital
|
242,718
|
|
241,899
|
|
Retained earnings
(deficit)
|
(184,478)
|
|
(199,072)
|
|
58,661
|
-
|
43,248
|
|
Treasury stock,
1,337,522 shares at October 25, 2015 and 1,568,875 shares
at April 26, 2015
|
|
|
|
|
(16,868)
|
|
(19,786)
|
|
Total stockholders'
equity
|
41,793
|
-
|
23,462
|
|
Total liabilities and
stockholders' equity
|
$ 1,213,135
|
|
$ 1,227,762
|
|
Isle of Capri
Casinos, Inc.
|
|
Supplemental Data
- Net Revenues
|
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
October
25,
|
|
October
26,
|
|
October
25,
|
|
October
26,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Colorado
|
|
|
|
|
|
|
|
|
Black Hawk
|
$ 33,598
|
|
$ 32,738
|
|
$ 68,004
|
|
$ 64,419
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
Pompano
|
38,526
|
|
36,733
|
|
80,424
|
|
74,457
|
|
|
|
|
|
|
|
|
|
|
Iowa
|
|
|
|
|
|
|
|
|
Bettendorf
|
18,478
|
|
18,273
|
|
36,470
|
|
37,807
|
|
Marquette
|
6,939
|
|
6,950
|
|
13,810
|
|
13,437
|
|
Waterloo
|
21,558
|
|
21,649
|
|
43,601
|
|
42,901
|
|
Iowa Total
|
46,975
|
|
46,872
|
|
93,881
|
|
94,145
|
|
|
|
|
|
|
|
|
|
|
Louisiana
|
|
|
|
|
|
|
|
|
Lake
Charles
|
28,868
|
|
31,075
|
|
60,693
|
|
63,611
|
|
|
|
|
|
|
|
|
|
|
Mississippi
|
|
|
|
|
|
|
|
|
Lula
|
12,167
|
|
12,335
|
|
25,114
|
|
25,010
|
|
Vicksburg
|
6,913
|
|
6,803
|
|
14,500
|
|
14,245
|
|
Mississippi
Total
|
19,080
|
|
19,138
|
|
39,614
|
|
39,255
|
|
|
|
|
|
|
|
|
|
|
Missouri
|
|
|
|
|
|
|
|
|
Boonville
|
18,865
|
|
19,075
|
|
39,203
|
|
38,265
|
|
Cape
Girardeau
|
15,028
|
|
14,809
|
|
29,509
|
|
29,169
|
|
Caruthersville
|
8,194
|
|
7,583
|
|
16,616
|
|
15,066
|
|
Kansas
City
|
17,485
|
|
17,395
|
|
35,764
|
|
35,224
|
|
Missouri
Total
|
59,572
|
|
58,862
|
|
121,092
|
|
117,724
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
|
|
|
|
|
|
|
|
|
Nemacolin
|
9,625
|
|
9,033
|
|
19,441
|
|
17,690
|
|
|
|
|
|
|
|
|
|
|
Property Net Revenues
before Other
|
236,244
|
|
234,451
|
|
483,149
|
|
471,301
|
|
Other
|
17
|
|
7
|
|
36
|
|
53
|
|
Net Revenues from
Continuing Operations
|
$ 236,261
|
|
$ 234,458
|
|
$ 483,185
|
|
$ 471,354
|
|
Isle of Capri
Casinos, Inc.
|
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
|
(unaudited, in
thousands)
|
|
Three Months Ended
October 25, 2015
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
|
Black Hawk,
Colorado
|
$
7,765
|
|
$
2,162
|
|
$
14
|
|
$ -
|
|
$ 9,941
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
4,713
|
|
2,558
|
|
14
|
|
-
|
|
7,285
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
2,125
|
|
2,690
|
|
7
|
|
-
|
|
4,822
|
|
Marquette,
Iowa
|
1,298
|
|
377
|
|
6
|
|
-
|
|
1,681
|
|
Waterloo,
Iowa
|
5,331
|
|
1,302
|
|
6
|
|
-
|
|
6,639
|
|
Iowa Total
|
8,754
|
|
4,369
|
|
19
|
|
-
|
|
13,142
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
678
|
|
2,806
|
|
7
|
|
-
|
|
3,491
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
1,339
|
|
1,294
|
|
4
|
|
-
|
|
2,637
|
|
Vicksburg,
Mississippi
|
385
|
|
884
|
|
7
|
|
-
|
|
1,276
|
|
Mississippi
Total
|
1,724
|
|
2,178
|
|
11
|
|
-
|
|
3,913
|
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
5,779
|
|
1,058
|
|
13
|
|
-
|
|
6,850
|
|
Cape Girardeau,
Missouri
|
263
|
|
2,905
|
|
5
|
|
-
|
|
3,173
|
|
Caruthersville,
Missouri
|
1,412
|
|
614
|
|
5
|
|
-
|
|
2,031
|
|
Kansas City,
Missouri
|
2,963
|
|
954
|
|
6
|
|
-
|
|
3,923
|
|
Missouri
Total
|
10,417
|
|
5,531
|
|
29
|
|
-
|
|
15,977
|
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
(1,022)
|
|
1,068
|
|
1
|
|
|
|
47
|
|
Total Operating
Properties
|
33,029
|
|
20,672
|
|
95
|
|
-
|
|
53,796
|
|
Corporate and
Other
|
(7,402)
|
|
434
|
|
1,602
|
|
-
|
|
(5,366)
|
|
Total
|
$
25,627
|
|
$
21,106
|
|
$
1,697
|
|
$ -
|
|
$ 48,430
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 26, 2014
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
|
Black Hawk,
Colorado
|
$
3,629
|
|
$
2,307
|
|
$
7
|
|
$ 3,044
|
|
$ 8,987
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
4,489
|
|
1,732
|
|
7
|
|
-
|
|
6,228
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
3,524
|
|
1,436
|
|
6
|
|
-
|
|
4,966
|
|
Marquette,
Iowa
|
1,261
|
|
402
|
|
4
|
|
-
|
|
1,667
|
|
Waterloo,
Iowa
|
6,594
|
|
1,289
|
|
5
|
|
(1,225)
|
|
6,663
|
|
Iowa Total
|
11,379
|
|
3,127
|
|
15
|
|
(1,225)
|
|
13,296
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
1,705
|
|
2,745
|
|
6
|
|
-
|
|
4,456
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
673
|
|
1,276
|
|
4
|
|
-
|
|
1,953
|
|
Vicksburg,
Mississippi
|
140
|
|
893
|
|
4
|
|
-
|
|
1,037
|
|
Mississippi
Total
|
813
|
|
2,169
|
|
8
|
|
-
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
5,658
|
|
987
|
|
2
|
|
-
|
|
6,647
|
|
Cape Girardeau,
Missouri
|
(458)
|
|
2,812
|
|
4
|
|
-
|
|
2,358
|
|
Caruthersville,
Missouri
|
846
|
|
629
|
|
3
|
|
-
|
|
1,478
|
|
Kansas City,
Missouri
|
2,897
|
|
960
|
|
7
|
|
-
|
|
3,864
|
|
Missouri
Total
|
8,943
|
|
5,388
|
|
16
|
|
-
|
|
14,347
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
(1,744)
|
|
1,362
|
|
3
|
|
|
|
(379)
|
|
Total Operating
Properties
|
29,214
|
|
18,830
|
|
62
|
|
1,819
|
|
49,925
|
|
Corporate and
Other
|
(7,239)
|
|
509
|
|
1,128
|
|
-
|
|
(5,602)
|
|
Total
|
$
21,975
|
|
$
19,339
|
|
$
1,190
|
|
$ 1,819
|
|
$ 44,323
|
|
Isle of Capri
Casinos, Inc.
|
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA
|
|
(unaudited, in
thousands)
|
|
Six Months Ended
October 25, 2015
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
|
Black Hawk,
Colorado
|
$
16,236
|
|
$
4,401
|
|
$
28
|
|
$ -
|
|
$ 20,665
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
10,555
|
|
4,457
|
|
28
|
|
-
|
|
15,040
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
4,298
|
|
4,955
|
|
17
|
|
-
|
|
9,270
|
|
Marquette,
Iowa
|
2,538
|
|
738
|
|
12
|
|
-
|
|
3,288
|
|
Waterloo,
Iowa
|
10,741
|
|
2,613
|
|
14
|
|
-
|
|
13,368
|
|
Iowa Total
|
17,577
|
|
8,306
|
|
43
|
|
-
|
|
25,926
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
2,450
|
|
5,586
|
|
16
|
|
-
|
|
8,052
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
3,120
|
|
2,564
|
|
10
|
|
-
|
|
5,694
|
|
Vicksburg,
Mississippi
|
1,373
|
|
1,776
|
|
14
|
|
-
|
|
3,163
|
|
Mississippi
Total
|
4,493
|
|
4,340
|
|
24
|
|
-
|
|
8,857
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
12,408
|
|
2,087
|
|
25
|
|
-
|
|
14,520
|
|
Cape Girardeau,
Missouri
|
42
|
|
5,786
|
|
12
|
|
-
|
|
5,840
|
|
Caruthersville,
Missouri
|
2,968
|
|
1,226
|
|
11
|
|
-
|
|
4,205
|
|
Kansas City,
Missouri
|
6,192
|
|
1,945
|
|
15
|
|
-
|
|
8,152
|
|
Missouri
Total
|
21,610
|
|
11,044
|
|
63
|
|
-
|
|
32,717
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
(2,163)
|
|
2,132
|
|
30
|
|
-
|
|
(1)
|
|
Total Operating
Properties
|
70,758
|
|
40,266
|
|
232
|
|
-
|
|
111,256
|
|
Corporate and
Other
|
(15,484)
|
|
891
|
|
2,826
|
|
-
|
|
(11,767)
|
|
Total
|
$
55,274
|
|
$
41,157
|
|
$
3,058
|
|
$ -
|
|
$ 99,489
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
October 26, 2014
|
|
Operating Income
(Loss)
|
|
Depreciation and
Amortization
|
|
Stock-Based
Compensation
|
|
Other
|
|
Adjusted
EBITDA
|
|
Black Hawk,
Colorado
|
$
8,139
|
|
$
4,650
|
|
$
15
|
|
$ 4,057
|
|
$ 16,861
|
|
|
|
|
|
|
|
|
|
|
|
Pompano,
Florida
|
9,328
|
|
3,474
|
|
13
|
|
-
|
|
12,815
|
|
|
|
|
|
|
|
|
|
|
|
Bettendorf,
Iowa
|
7,540
|
|
2,888
|
|
10
|
|
-
|
|
10,438
|
|
Marquette,
Iowa
|
2,159
|
|
858
|
|
5
|
|
-
|
|
3,022
|
|
Waterloo,
Iowa
|
11,942
|
|
2,475
|
|
9
|
|
(1,225)
|
|
13,201
|
|
Iowa Total
|
21,641
|
|
6,221
|
|
24
|
|
(1,225)
|
|
26,661
|
|
|
|
|
|
|
|
|
|
|
|
Lake Charles,
Louisiana
|
4,050
|
|
5,575
|
|
10
|
|
-
|
|
9,635
|
|
|
|
|
|
|
|
|
|
|
|
Lula,
Mississippi
|
1,599
|
|
2,563
|
|
7
|
|
-
|
|
4,169
|
|
Vicksburg,
Mississippi
|
230
|
|
1,785
|
|
8
|
|
-
|
|
2,023
|
|
Mississippi
Total
|
1,829
|
|
4,348
|
|
15
|
|
-
|
|
6,192
|
|
|
|
|
|
|
|
|
|
|
|
Boonville,
Missouri
|
11,436
|
|
1,975
|
|
8
|
|
-
|
|
13,419
|
|
Cape Girardeau,
Missouri
|
(937)
|
|
5,602
|
|
5
|
|
-
|
|
4,670
|
|
Caruthersville,
Missouri
|
1,506
|
|
1,297
|
|
7
|
|
-
|
|
2,810
|
|
Kansas City,
Missouri
|
5,809
|
|
1,909
|
|
11
|
|
-
|
|
7,729
|
|
Missouri
Total
|
17,814
|
|
10,783
|
|
31
|
|
-
|
|
28,628
|
|
|
|
|
|
|
|
|
|
|
|
Nemacolin,
Pennsylvania
|
(3,517)
|
|
2,719
|
|
4
|
|
-
|
|
(794)
|
|
Total Operating
Properties
|
59,284
|
|
37,770
|
|
112
|
|
2,832
|
|
99,998
|
|
Corporate and
Other
|
(16,809)
|
|
978
|
|
1,957
|
|
2,259
|
|
(11,615)
|
|
Total
|
$
42,475
|
|
$
38,748
|
|
$
2,069
|
|
$ 5,091
|
|
$ 88,383
|
|
Isle of Capri
Casinos, Inc.
|
|
Reconciliation of
Income (Loss) From Continuing Operations to Adjusted
EBITDA
|
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
October
25,
|
|
October
26,
|
|
October
25,
|
|
October
26,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Income (loss) from
continuing operations
|
$ 7,811
|
|
$
(71)
|
|
$ 16,279
|
|
$ (1,796)
|
|
Income tax
provision
|
892
|
|
1,024
|
|
1,743
|
|
2,007
|
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
2,966
|
|
-
|
|
Interest
income
|
(80)
|
|
(92)
|
|
(159)
|
|
(179)
|
|
Interest
expense
|
17,004
|
|
21,114
|
|
34,445
|
|
42,443
|
|
Depreciation and
amortization
|
21,106
|
|
19,339
|
|
41,157
|
|
38,748
|
|
Stock-based
compensation
|
1,697
|
|
1,190
|
|
3,058
|
|
2,069
|
|
Colorado referendum
expense (3)
|
-
|
|
3,044
|
|
-
|
|
4,057
|
|
Property tax
settlement (3)
|
-
|
|
(1,225)
|
|
-
|
|
(1,225)
|
|
Severance expense
(3)
|
-
|
|
-
|
|
-
|
|
2,259
|
|
Adjusted EBITDA
(1)
|
$ 48,430
|
|
$ 44,323
|
|
$ 99,489
|
|
$ 88,383
|
|
Isle of Capri
Casinos, Inc.
|
|
Reconciliation of
GAAP Income (Loss) From Continuing Operations to Adjusted Income
(Loss) and
GAAP Income (Loss) From Continuing Operations Per Share to Adjusted
Income (Loss) Per Share
|
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
October
25,
|
|
October
26,
|
|
October
25,
|
|
October
26,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
$ 7,811
|
|
$
(71)
|
|
$ 16,279
|
|
$ (1,796)
|
|
Loss on early
extinguishment of debt
|
-
|
|
-
|
|
2,966
|
|
-
|
|
Colorado referendum
expense (3)
|
-
|
|
3,044
|
|
-
|
|
4,057
|
|
Property tax
settlement (3)
|
-
|
|
(1,225)
|
|
-
|
|
(1,225)
|
|
Severance expense
(3)
|
-
|
|
-
|
|
-
|
|
2,259
|
|
Adjusted income
(loss) (2)
|
$ 7,811
|
|
$ 1,748
|
|
$ 19,245
|
|
$ 3,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations per share
|
$
0.19
|
|
$ (0.00)
|
|
$
0.39
|
|
$
(0.05)
|
|
Loss on early
extinguishment of debt
|
-
|
|
-
|
|
0.07
|
|
-
|
|
Colorado referendum
expense (3)
|
-
|
|
0.08
|
|
-
|
|
0.10
|
|
Property tax
settlement (3)
|
-
|
|
(0.03)
|
|
-
|
|
(0.03)
|
|
Severance expense
(3)
|
-
|
|
-
|
|
-
|
|
0.06
|
|
Adjusted income
(loss) per share (2)
|
$
0.19
|
|
$
0.05
|
|
$
0.46
|
|
$
0.08
|
|
1.
|
Adjusted EBITDA is
"earnings from continuing operations before interest and other
non-operating income (expense), income taxes, stock-based
compensation, certain severance expenses, certain expenses related
to the Colorado gaming referendum, certain property tax and legal
settlements, valuation charges, certain asset sale gains and
depreciation and amortization." Adjusted EBITDA is presented solely
as a supplemental disclosure because management believes that it is
1) a widely used measure of operating performance in the gaming
industry, 2) used as a component of calculating required leverage
and minimum interest coverage ratios under our Senior Credit
Facility and 3) a principal basis of valuing gaming companies.
Management uses Adjusted EBITDA as the primary measure of the
Company's operating properties' performance, and it is an important
component in evaluating the performance of management and other
operating personnel in the determination of certain components of
employee compensation. Adjusted EBITDA should not be
construed as an alternative to operating income as an indicator of
the Company's operating performance, as an alternative to cash
flows from operating activities as a measure of liquidity or as an
alternative to any other measure determined in accordance with U.S.
generally accepted accounting principles (GAAP). The Company
has significant uses of cash flows, including capital expenditures,
interest payments, taxes and debt principal repayments, which are
not reflected in Adjusted EBITDA. Also, other gaming companies that
report Adjusted EBITDA information may calculate Adjusted EBITDA in
a different manner than the Company. A reconciliation of
Adjusted EBITDA to income (loss) from continuing operations is
included in the financial schedules accompanying this
release.
|
|
|
|
Certain of our debt
agreements use a similar calculation of "Adjusted EBITDA" as a
financial measure for the calculation of financial debt covenants
and includes add back of items such as gain on early extinguishment
of debt, preopening expenses, certain write-offs and valuation
expenses, and non-cash stock compensation expense. Reference can be
made to the definition of Adjusted EBITDA in the applicable debt
agreements on file as Exhibits to our filings with the Securities
and Exchange Commission.
|
|
|
|
2.
|
Adjusted income
(loss) is presented solely as a supplemental disclosure as this is
one method management reviews and utilizes to analyze the
performance of its core operating business. For many of the
same reasons mentioned above related to Adjusted EBITDA, management
believes Adjusted income (loss) and Adjusted income (loss) per
share are useful analytic tools as they enable management to track
the performance of its core casino operating business separate and
apart from factors that do not impact decisions affecting its
operating casino properties, such as gain (loss) on early
extinguishment of debt, certain severance expenses, certain
expenses related to the Colorado gaming referendum, certain
property tax and legal settlements, valuation charges, certain
asset sale gains and preopening expenses. Management believes
Adjusted income (loss) and Adjusted income (loss) per share are
useful to investors since these adjustments provide a measure of
financial performance that more closely resembles widely used
measures of performance and valuation in the gaming industry.
Adjusted income (loss) and adjusted income (loss) per share do not
include the gain (loss) on early extinguishment of debt, certain
severance expenses, certain expenses related to the Colorado gaming
referendum, certain property tax and legal settlements, valuation
charges, certain asset sale gains and preopening
expenses.
|
|
|
|
3.
|
The Company incurred
$3.0 million and $4.1 million of expense during the three months
and six months ended October 26, 2014, respectively, related to the
Colorado gaming expansion referendum. The Company had a favorable
property tax settlement related to our Waterloo property of $1.2
million in during the three and six months ended October 26,
2014. The Company recorded $2.3 million of severance expense
during the six months ended October 26, 2014, related to
restructuring at the corporate office.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/isle-of-capri-casinos-inc-announces-fiscal-2016-second-quarter-results-300186705.html
SOURCE Isle of Capri Casinos, Inc.